DMO lists N225bn FGN bond for subscription by auction

The Debt Management Office (DMO) has announced an offer of three Federal Government of Nigeria (FGN), bonds valued at N225bn, for subscription through auction.

The DMO announced the bonds offer in a statement on Thursday.

The offers are N75bn, March 2025 FGN bond, at 13.53 per cent interest rate per annum (10 year re-opening) and N75bn, April 2032 FGN bond at 12.50 interest rate per annum (10-year re-opening)

The third offer is N75bn, January 2042 FGN bond, at 23 per cent interest rate per annum (20-year re-opening).

The FGN bonds are offered at N1.000 per unit, subject to a minimum of N50m and in multiples of N1,000 thereafter.

“For re-openings of previously issued bonds, successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument.

“Interest is payable semi-annually, while the bullet repayment is on the maturity date,” the DMO said.

It said that the FGN bonds qualify as securities in which trustees can invest under the Trustee Investment Act.

“They also qualify as government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for Tax Exemption for Pension Funds, among other investors.

“They are listed on The Nigerian Stock Exchange and qualify as a liquid asset for liquidity ratio calculation for banks.

“FGN bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria,” it said.